Performance-based budgeting: evidence from Indonesia

Widodo, Teguh (2017). Performance-based budgeting: evidence from Indonesia. University of Birmingham. Ph.D.

Preview

Widodo17PhD_Redacted.pdf
PDF - Redacted Version
Download (5MB)

Abstract

This thesis investigates the implementation of performance-based budgeting through a case-study of Indonesia. It examines the use by government officials/practitioners of performance information in the planning and budget-making process at the national level within Indonesia. In particular, the thesis assesses the impact that performance results have on budget allocations vis-a-vis other factors affecting budget allocation decisions. It also identifies the key challenges for government officials in seeking to implement a performance-based budgeting regime, especially, the challenge of moving the actual practice of budgetmaking model further away from a traditional incremental approach.
The research for the thesis has involved a combination of qualitative and quantitative analysis, with three different data collection methods deployed. Interviews were conducted with fifty three government officials from the Ministry of Planning, the Ministry of Finance, seven other ministries/agencies and Parliament. A questionnaire was also designed and administered with seventy nine line ministry/agency officials. Finally, statistical analysis of performance scores and budget data was undertaken for 435 spending programmes covering 86 line ministries/agencies over the period 2011- 2014.
A key conclusion from the study is that Indonesia has made significant efforts in the direction of using performance information in its budgetary planning processes. The Ministry of Planning, the Ministry of Finance, and line ministries/agencies have been particularly active in leading change in this respect. That said, the evidence gathered from the interviews, questionnaire responses and statistical analysis clearly show that, as elsewhere around the world, the impact of performance information on resource allocation decisions has, so far, been quite limited, and that incrementalism continues to dominate budgetary decision-making. While performance information is becoming increasingly important for managerial purposes within line ministries/agencies, the more challenging goal of breaking well-established budget-setting practices and instituting a more performance-driven allocation model is largely still to be achieved.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):